GST for E-commerce: Sale through Aggregators

Who requires Registration?

All the traders/dealers selling goods online need to get registered under GST irrespective of their turnover.

All businesses that successfully register under GST are assigned a unique Goods and Services Tax Identification Number also know as GSTIN.

What is the consequence of non-registration?

For registering as a seller on e-commerce websites like Flipkart, Amazon, Snapdeal etc., GST registration is mandatory.

Carrying a business without registering under GST, is an offence. Penalty of 100% of the tax amount due subject to a minimum of Rs.10,000, can be levied for non-registration.

How to obtain GST Registration?

GST registration can be easily done on the online GST portal. Business owners can fill a form on the GST portal and submit the necessary documents for registration.

Steps to register:

Visit the GST portal (https://www.gst.gov.in/).

Click on the ‘Register Now’ link which can be found under the ‘Taxpayers’ tab

Select ‘New Registration’.

Fill the mentioned details and click on Proceed.

A Temporary Reference Number (TRN) will be generated. Note down the TRN.

Visit GST portal again and click on ‘Register’ under the ‘Taxpayers’ menu.

Enter the TRN to see status of your application.

Complete the application and submit all the documents required.

Once completed, a success message will be shown on the screen. The Application Reference Number (ARN) will be sent to the registered mobile number and email ID.

What are the documents required for GST Registration?

PAN of the Applicant

Aadhaar card

Proof of business registration or Incorporation certificate

Identity and Address proof of Promoters/Director with Photographs

Address proof of the place of business

Bank Account statement/Cancelled cheque

Digital Signature

Letter of Authorization/Board Resolution for Authorized Signatory

How many days are required for Registration?

GST registration usually takes between 2-6 working days. If the information and the uploaded documents are found in order, the State and the Central authorities shall have to respond to the application within 3 working days. 

What is the cost involved in registration?

There is no fee charged by the Government for registration. In case you approach any professional for the task, they can charge.

Can e-commerce suppliers store their goods in a common warehouse?

Suppliers on an e-commerce platform can store their goods at a common warehouse. Before storing goods in a common warehouse, the supplier must add the warehouse of the ecommerce operator as a place of business on the GST registration.

What is TCS?

The e-commerce aggregator is responsible  for collecting tax from buyer and depositing at the rate of one percent (0.5% CGST + 0.5% SGST) of any transaction on behalf of the supplier.

Any dealers/traders selling goods/services online would get the payment after deduction of 1% tax.

What returns are required to be filed?

E-commerce suppliers are required to file Form GSTR-1, 2, 3 monthly and GSTR-9 is to be filed annually.

GST based reports are provided by all major E-commerce platforms like Amazon, Flipkart, Snapdeal. Also, they provide the commission invoices and other useful reports which could be used for reporting & reconciliations as well.

Sellers should tally the report with their own accounts before filing of return to avoid any mismatch.